DTI QUESTIONS AND HOW TO PURCHASE HOME FROM FAMILY MEMBER WITH GIFT EQUITY....

[tooleman694]

Also there is talk of bank doing loans that dont meet QM, so if you can find a bank that does not sell off their loans to the secondary market you could get away from the backend ratio.

On top of that there is more talk about some investors buying loans that dont meet QM. So I think there will be ways to still do it, but it wont be the norm.

[StartingOver10]

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@tooleman694 wrote:

Also there is talk of bank doing loans that dont meet QM, so if you can find a bank that does not sell off their loans to the secondary market you could get away from the backend ratio.

On top of that there is more talk about some investors buying loans that dont meet QM. So I think there will be ways to still do it, but it wont be the norm.

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^^Yes, you know who is developing those loans that don't meet QM - One West (used to be Indymac). Indymac was one of the large subprime lenders in its day before the crash. It is going to be interesting to see what happens next. Seems like their will be a two tiered system - just like before: prime and subprime. Only now it will be called: QM loans and non-QM loans.  *just waiting with bated breath overhere to see*

[liandur]

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@tooleman694 wrote:

Also there is talk of bank doing loans that dont meet QM, so if you can find a bank that does not sell off their loans to the secondary market you could get away from the backend ratio.

On top of that there is more talk about some investors buying loans that dont meet QM. So I think there will be ways to still do it, but it wont be the norm.

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But doesn't it meet QM if it falls below 43% DTI? Would it fall into an auto approval or have to go into manual underwrite just because it is close to 43%? (Given no blemishes on credit and 720+score)

[Peter1142]

There is of course also FHA. They allow > 43% DTI if approved by AU, which it frequently is, and by manual underwriting with compensatory factors. They do not plan on adopting this QM rule.